Which of the following is untrue about start-up costs? a) The costs must be incurred in...
Which of the following is untrue about start-up costs?
a) The costs must be incurred in the same line of business you are already in
b) Amounts not expensed immediately are amortized over 15 years
c) The first $5,000 is potentially deductible in the year business begins.
d) The costs are not deductible if you do not actually start the business.
Homework Answers
Answer
a) The costs must be incurred in the same line of business you are already in
as
The cost may be incurred for new start up there is no such condition that you must incure the cost for the start up in the business which relates to your business in which you are already in
so the statement is untrue that
a) The costs must be incurred in the same line of business you are already in
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